Unpredictable climate variations, including severe droughts and heat waves, pose significant challenges to agricultural water management and threaten the economic sustainability of farmers. This study examines the effects of different irrigation methods and water supply services on the economic performance of farmers in the processing tomato sector, using micro-level data from the Italian Farm Accountancy Data Network (FADN) from 2008 to 2021. The analysis reveals economic benefits generated by adopting a self-supply water management strategy and more sustainable irrigation techniques (micro-irrigation), especially in regions experiencing acute droughts and higher temperatures. Findings emphasize the importance of considering the regionspecific context when implementing policy interventions, technological innovations, and governance structures, particularly in Mediterranean countries where water scarcity increasingly restricts agricultural output